Bombay High Court Directs ITAT to Follow 90-Day Rule

• Bombay High Court orders every ITAT to follow 90-day rule for delivering judgments.
• The 90-day rule is a crucial aspect of the Income-tax (Appellate Tribunal) Rules, 1963, specifically Rule 34.
• Taxpayers' rights are protected as the court aims to ensure timely judgment delivery and promote transparency in the ITAT system.

The court's intervention aims to bring much-needed clarity and accountability to the process.

A taxpayer's case before the Bombay High Court highlighted a concerning trend: despite being heard thrice, no judgment had been pronounced. The court took action, ordering every Income-tax Appellate Tribunal (ITAT) in the country to follow the 90-day rule for delivering judgments. This move is significant, as it addresses a long-standing issue with the timeliness of ITAT decisions.

The taxpayer's case was just one example of the problem. With no clear timeline for judgment delivery, taxpayers are left uncertain and vulnerable to further delays. The court's intervention aims to bring much-needed clarity and accountability to the process.

The 90-day rule is a crucial aspect of the Income-tax (Appellate Tribunal) Rules, 1963, specifically Rule 34. This rule sets a deadline for ITATs to deliver judgments within three months from the date of hearing. However, despite its importance, this rule has often been disregarded in practice.

The Bombay High Court's decision is a landmark judgment that underscores the need for ITATs to adhere to this rule. By doing so, the court aims to protect taxpayers' rights and ensure that justice is served in a timely manner.

This development has significant implications for taxpayers and lawyers alike. The Bombay High Court's decision sets a crucial precedent that may impact the timeliness of judgments in similar cases before the ITAT. Lawyers should take note, as this ruling highlights the importance of adhering to the 90-day rule.

The court's intervention also underscores the need for greater accountability within the ITAT system. By prioritizing timely judgment delivery, the court aims to promote transparency and fairness in the administration of justice.

Lawyers should watch for this development as it sets a precedent that may impact the timeliness of judgments in similar cases before the ITAT.

Source: Original reporting via SCC Times